June 10, 2014
The Sincerest form of Market Saturation
It has been argued so much it is cliché. Imitation is the sincerest form of flattery. Couple that maxim with another equally familiar saying: nothing succeeds like success, and Founder and CEO of 5W Public Relations – Ronn Torossian says it’s easy to understand why there are so many luxury towers popping up just south of Central Park.
Extell Development has enjoyed huge success with its ultra-luxurious One57 tower, so, of course, rival developers are fighting each other to snap up the remaining available property, and try to make lightning strike multiple times. Each of these developers, if they have been in the game any time at all, know the importance of timing and order. You don’t always have to be the first, but you must get in before the tipping point.
Torossian describes the tipping point in two ways. Commercially, it is the point at which the idea has reached optimum profitability. Everything else in a similar station, location, or market will be increasingly less profitable. Further, in a Public R context, the tipping point is when your warm market goes from being excited to being merely noncommittal. It can happen quickly, and when it does, there may be no bringing sexy back for that market.
In the World Series of Poker, there is a point when the last guy busts out before the money starts being awarded. That player is know as the “bubble boy,” because he played well, but not well enough to finish in the money.The idea here, whether in building a concept or marketing it, is that you don’t have to be the first, you just have to be faster than they guy who finds himself in the bubble between marketability and apathy. Sort of like the old joke about not having to outrun the bear, just the people the bear gets to first.
Call it a tipping point, or a bubble, or the guy who’s gonna be lunch for the grizzly, by any description, getting in after a market is saturated is a losing proposition. But, what do you do if you are in 3rd or 4th position but still ahead of the curve? Well, Torossian says that is when PR really kicks in. If you can find a niche in the market and then tell a bigger, better story to more and better prospects, you might get into the market late, but you can make up ground with connectivity.
In fact, when played right, 3rd position can be a prime spot for playing spoiler.